through 2007 and did not file or pay any taxes how much trouble would thry be in
2007-06-18 14:59:15 · 3 answers · asked by phil d 2 in Business & Finance ➔ Taxes ➔ United States
It would depend on how much tax (if any) that you would owe.
You need to compare your business income to your expenses, mileage, etc. Depending on your other tax-related situation (married, kids, other deductions) you may not owe anything which would mean your are not in any trouble at all!
However, if you do owe tax, then you now owe a whole bunch more with interest and penalties. The sooner you address this the better, even if you can't afford to pay the bill, you can make arrangements with the IRS.
Also what kind of documentation is there of your income... any 1099s? If so, the IRS has record of your income and will definately come looking for their due tax!
Waiting will only make everything worse, and you never know, you may end up getting a refund!
Good Luck
2007-06-18 15:59:56 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Well, they'd probably owe a lot of money, depending on how much they made. Penalties and interest continue to accumulate, so at some point if the person gets caught, they'd owe a lot more than they would have if they'd paid their taxes when they were due.
The best thing to do would be to take all the records to a CPA (NOT someplace like H&R Block) and let them sort it out and figure what the person owes.
2007-06-19 03:28:13 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
a lot of trouble if u get audited
2007-06-18 15:03:23 · answer #3 · answered by Sunshine 2 · 0⤊ 0⤋